Vranken-Pommery Monopole, a major champagne group, has released its business review for the first three months of 2007.
Consolidated revenue amounted to €42.1 million in the first three months of 2007, an increase of 2.6% over the prior-year period.
“We’re satisfied with our first-quarter sales growth,” said Chairman and Chief Executive Officer Paul François Vranken, “since this is traditionally a fairly calm period for the champagne business after the very busy year-end holiday season.”
Financial situation
Champagne revenue, which represents 91% of the consolidated total, rose 2.7% during the quarter, led by a 4.5% improvement in the price mix (excluding the currency effect).
Note that champagne sales are highly seasonal, with the first quarter traditionally accounting for only 15% of annual revenue. In addition, given the low shipping volumes during the period, the change in unit sales is not material and gives little indication of full-year trends.
As in the first quarter of every year, the Group negotiated and implemented several marketing agreements in France and abroad for 2007, whose highly satisfactory terms and conditions reflect and support the Group’s 2007 revenue growth target of 6 to 7%.
Highlights of the quarter
As part of its strategy of expanding in high-potential regions, Vranken-Pommery Monopole has decided to take over direct distribution of Pommery champagne in the United States via its subsidiary, Vranken Pommery America, beginning in the second half of the year. The move will stimulate the Group’s expansion in the region, with the medium-term goal of gaining a market share of 8 to 10%.
About Vranken-Pommery Monopole
Vranken-Pommery Monopole is one of the world’s leading Champagne groups. Its balanced portfolio of brands spans the entire market, with Cuvée Louise, Pop and Pommery, Vranken Demoiselle and Diamant, Charles Lafitte and Heidsieck & Co Monopole champagnes. Vranken-Pommery Monopole is also present in premium port wines with Rozès and São Pedro, and is establishing its position as a prime distributor of rosé wines, with “Vins des Sables” (Listel) and “Vins de Provence” (Chapelle Gordonne and Billette), which it markets worldwide.
Vranken-Pommery Monopole had 2006 revenue of €268 million. Taking into account the distribution of Listel products, business volume, net of marketing agreements, amounted to over €330 million. The Vranken-Pommery Monopole share is traded on the Euronext Paris market, Eurolist compartment B (symbol: VRAP, ISIN code: FR0000062796).
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